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What's in the Cards for D-Wave Quantum's (QBTS) Q2 Earnings?

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D-Wave Quantum (QBTS - Free Report) is slated to release second-quarter 2023 results on Aug 10.

For second-quarter 2023, D-Wave Quantum expects revenues between $1.65 million and $1.8 million.

The Zacks Consensus Estimate for second-quarter 2023 revenues is pegged at $1.8 million, suggesting a growth of 31.39% from the figure reported in the year-ago quarter.

The consensus mark for loss has declined 7% to 13 cents per share in the past 30 days. The company reported a loss of 12 cents per share in the year-ago quarter.

D-Wave Quantum Inc. Price and EPS Surprise

 

D-Wave Quantum Inc. Price and EPS Surprise

D-Wave Quantum Inc. price-eps-surprise | D-Wave Quantum Inc. Quote

 

Let’s see how things have shaped up for the upcoming announcement.

Factors to Consider

D-Wave Quantum is expected to have benefitted from the strength of its quantum computing solutions. Accelerating the adoption of quantum among commercial customers is expected to bode well for its second-quarter 2023 results.

It has experienced strong demand and adoption of its quantum annealing technology solutions, allowing enterprises to solve computationally complex optimization problems. This is likely to have supported revenue growth in the quarter to be reported.

The company’s performance in the second quarter is likely to have benefited from initiatives that bolster growth in the number and size of customer deals. D-Wave’s new and expanded agreements with customers, including Interpublic Group, Unisys Corporation and VINCI Energies, continue to fuel innovation in quantum computing, thereby boosting the top line.

D-Wave’s initiatives towards product innovation has been noteworthy. It’s new initiative combining the power of quantum with AI and ML through new feature selection offerings is expected to enhance D-Wave’s solutions in the to-be-reported quarter.

However, stiff competition in the quantum computing space and complex revenue recognition strategies associated with professional services contracts are expected to have hurt QBTS’ prospects in second-quarter 2023.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

D-Wave Quantum has an Earnings ESP of 0.00% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

BILL Holdings (BILL - Free Report) has an Earnings ESP of +4.35% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

BILL’s shares have gained 2.9% year-to-date. BILL Holdings is set to post fourth-quarter fiscal 2023 results on Aug 17.

CACI International (CACI - Free Report) has an Earnings ESP of +2.36% and a Zacks Rank of 2 at present.

CACI International’s shares have gained 18.9% year to date. CACI is set to report its fourth-quarter fiscal 2023 results on Aug 9.

NVIDIA (NVDA - Free Report) has an Earnings ESP of +5.56% and a Zacks Rank #1.

NVIDIA’s shares have gained 210.9% year to date. NVDA is set to report second-quarter 2023 results on Aug 23.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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